Financial yield and investments: The importance of a hotel consulting firm
In today’s competitive setting, hotels are becoming increasingly aware of the positive results obtained through the advice and contributions of consulting firms. Hotel owners and managers are asking themselves much more frequently whether they are making the most of future demand, their financial yield is appropriate or they are attracting the customers with the most potential.
The services provided by consulting firms specifically target hotel owners and managers who at some point in their career feel the need to obtain assistance or advice in addressing an array of problems and implementing continuous improvement processes. Therefore, the fundamental goal is to recommend viable solutions and to implement appropriate measures aimed at increasing the hotel’s productivity and competitiveness.
Before making any decisions and taking action, a number of processes and objectives must first be considered. The consulting firm must identify the needs, the areas for improvement, the technological tools available, and how to move forward. As far as the financial aspects, hotel owners and managers have and will continue to have more freedom in deciding what to do with their inventory and prices. Of course, they can always receive financial advice from their financial advisors, who they may have sought out after attending their financial seminar (check it out here) to help them come to a conclusion about whether their financial strategy is working in their favour or not. The outcome could determine how successful your hotel will be in the long run. Most are focused on achieving the highest occupancy possible and would rather fill the hotel than sell their rooms at a slightly higher price.
We already know that revenue management strives to improve a hotel establishment’s current pricing strategy through the use of an automated system. This system has expanded significantly in recent years and its development has shown exponential growth, in line with technological advances. However, despite the number of years that revenue management has existed in the hotel industry, there continue to be a number of false myths or inaccurate ideas about it , so a strong knowledge base is essential.
The benefits of hiring a professional hotel consulting firm to stimulate a hotel’s financial yield can be summarized as:
- Using new financial measurement criteria and operational instruments.
- Analyzing the standard team operations, philosophy and corporate mission to ensure they are aligned.
- Applying strategies to boost revenue, yield management techniques and operating cost management.
- Focusing on the details and identifying the fundamental keys in establishing the loyalty of potential customers.
- Providing access (and adjusting) to new technologies, markets and challenges.
- Lowering costs and increasing the return on investment.
- Taking into consideration indicators such as RevPar (revenue per available room), one of the most important indicators for hotel owners and managers.
- Defining the company’s strengths and weaknesses, its resistance to change, how it operates as a hotel system, and the criteria needed for its corporate and financial health.
- Obtaining an impartial and innovative perspective for problem solving.
- Establishing a program to implement continuous improvement processes and solutions, and putting into practice the suggested solutions.
- Applying upselling and cross-selling techniques, along with a good online marketing and social media strategy. These items are extremely effective at increasing a hotel’s revenue as well as improving product quality and guest satisfaction.
The opportunities of Big Data, improvements to technology, descriptive analysis methods and more extensive revenue management training have generated a great deal of interest in the industry towards this field.
How does a hotel consulting firm help us obtain investors for new projects?
When considering a new project, a consulting firm can help you create a solid business plan and then find the investors that are needed to make a new project a reality or to improve an existing project.
In summary, it is important to be surrounded by experienced professionals who help us collect the necessary information so it can then be analyzed properly. One of the aims of consulting firms is to identify the most attractive hotel assets along with those that best fit the type of investments we are making.